(1)The Municipality may, from time to time, raise, by a resolution in this behalf passed at a meeting of the Municipality, a loan within the limits set by the Comprehensive Debt Limitation Policy framed under Section 106, by the issue of debentures or otherwise, on the security of the property tax or of all or any of the other taxes, surcharges, cesses and fees and dues under this Act or of both the property tax and all or any of the other taxes, surcharges, cesses and fees and dues under this Act, or on the guarantee by the State Government, of any sum of money which may be required for the purpose of-(a)construction of works under this Act, or(b)acquisition of lands and buildings for the purposes of this Act, or(c)paying off any debt due to the State Government, or(d)repayment of a loan raised under this Act, or(e)acquisition of a public utility concern which renders such services as the Municipality is authorized to render under this Act, or(f)purchase of vehicles, locomotive engines, boilers and machinery necessary for carrying out the purposes of this Act, or(g)any other purpose for which the Municipality is, by or under this Act or any other law for the time being in force, authorized to borrow:Provided that any loan proposed to be raised which goes beyond the limits set by the Comprehensive Debt Limitation Policy as aforesaid shall require the previous sanction of the State Government with regard to its purpose, the quantum, the rate of interest and the period for repayment, and the other terms and conditions, if any:Provided further that in addition to the loans as aforesaid, the Municipality may also take loan from the State Government or any statutory body or Public Sector Corporation.
